January 29, 2016

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VALUATION WATCH: Overvalued stocks now make up 25.8% of our stocks

assigned a valuation and 7.55% of those equities are calculated to be
overvalued by 20% or more. Zero sectors are calculated to be overvalued.
MARKET OVERVIEW
Index

Started week

Friday PM

Change

Change %

ytd

DJIA

16086.46

16345.5

259.04

1.61%

-8.29%

NASDAQ

4574.59

4577.28

2.69

0.06%

-3.16%

RUSSELL 2000

1019.43

1023.62

4.19

0.41%

-15.03%

S&P 500

1906.28

1925.23

18.95

0.99%

-6.49%

Summary of VE Stock Universe

Stocks Undervalued

74.20%

Stocks Overvalued

25.80%

Stocks Undervalued by 20%

41.73%

Stocks Overvalued by 20%

7.55%

SECTOR OVERVIEW
Sector

Change

MTD

YTD

Valuation

Last 12-M
Return

P/E
Ratio

Aerospace

0.25%

-9.33%

-9.33%

11.53% undervalued

-15.55%

18.32

Auto-Tires-Trucks

-0.32%

-12.90%

-12.90%

24.52% undervalued

-21.32%

10.78

Basic Materials

0.22%

-10.94%

-10.96%

23.44% undervalued

-28.97%

21.69

Business Services

0.52%

-7.32%

-7.32%

10.57% undervalued

-12.72%

21.9

Computer and Technology

-0.57%

-8.56%

-7.27%

10.35% undervalued

-10.97%

26.67

Construction

0.00%

-10.41%

-10.41%

22.24% undervalued

-15.49%

17.09

Consumer Discretionary

0.32%

-7.87%

-7.87%

14.42% undervalued

-11.46%

22.31

Consumer Staples

0.90%

-4.48%

-4.48%

1.40% undervalued

-6.16%

22.42

Finance

0.29%

-8.38%

-8.38%

11.09% undervalued

-9.05%

14.87

Industrial Products

-0.18%

-9.11%

-9.11%

14.36% undervalued

-14.66%

16.57

Medical

-1.96%

-13.55%

-13.55%

18.54% undervalued

-18.21%

25.36

Multi-Sector Conglomerates

0.18%

-9.83%

-9.83%

11.88% undervalued

-18.76%

15.31

Oils-Energy

3.36%

-10.62%

-10.62%

22.38% undervalued

-39.13%

20.29

Retail-Wholesale

-0.47%

-8.32%

-8.32%

15.34% undervalued

-17.35%

21.63

Transportation

0.01%

-11.04%

-11.04%

27.30% undervalued

-32.30%

12.37

Utilities

1.21%

-4.14%

-4.14%

2.72% undervalued

-11.80%

21.76

Sector TalkBasic Materials

Below, we present the latest data on leading Basic Materials Sector stocks from
our Professional Stock Analysis Service. These results were filtered by market price
and volume--no results below 3$/share or less than 100k shares/day volume.

Top-Five Basic Materials Sector Stocks--Short-Term Forecast Returns

Ticker

Company Name

Market Price

Valuation(%)

Last 12-Mon
Retn(%)

CALM

CAL-MAINE FOODS

48.91

7.05%

34.85%

OME

OMEGA PROTEIN

20.12

-13.99%

82.74%

CSV

CARRIAGE SVCS-A

22.05

-15.10%

4.75%

HELE

HELEN OF TROY

85.57

-3.05%

14.34%

RAI

REYNOLDS AMER

45.7

-34.25%

32.91%

Top-Five Basic Materials Sector Stocks--Long-Term Forecast Returns

Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

CALM

CAL-MAINE FOODS

48.91

7.05%

34.85%

OME

OMEGA PROTEIN

20.12

-13.99%

82.74%

CSV

CARRIAGE SVCS-A

22.05

-15.10%

4.75%

HELE

HELEN OF TROY

85.57

-3.05%

14.34%

RAI

REYNOLDS AMER

45.7

-34.25%

32.91%

Top-Five Basic Materials Sector Stocks--Composite Score

Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

RAI

REYNOLDS AMER

45.7

-34.25%

32.91%

CALM

CAL-MAINE FOODS

48.91

7.05%

34.85%

OME

OMEGA PROTEIN

20.12

-13.99%

82.74%

TSN

TYSON FOODS A

51.01

10.95%

25.30%

HELE

HELEN OF TROY

85.57

-3.05%

14.34%

Top-Five Basic Materials Sector Stocks--Most Overvalued

Ticker

Company Name

Market Price

Valuation

Last 12-M Retrn

PRMW

PRIMO WATER CP

8.09

60.89%

99.51%

TAP

MOLSON COORS-B

86.57

49.53%

12.93%

LANC

LANCASTER COLON

116.83

33.16%

25.65%

STZ

CONSTELLATN BRD

143.45

25.51%

29.78%

CLX

CLOROX CO

125.89

25.31%

15.69%

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Free Download for Readers

As a bonus to our Free Weekly Newsletter subscribers,
we are offering a FREE DOWNLOAD of one of our Stock Reports
JCPenney (JCP) is one of America's leading retailers, operating department stores
throughout the United States and Puerto Rico, as well as one of the largest apparel
and home furnishing sites on the Internet, jcp.com, and the nation's largest general
merchandise catalog business. Through these integrated channels, JCPenney offers a
wide array of national, private and exclusive brands.
ValuEngine continues its HOLD recommendation on PENNEY (JC) INC for 2016-01-28.
Based on the information we have gathered and our resulting research, we feel that
PENNEY (JC) INC has the probability to ROUGHLY MATCH average market
performance for the next year. The company exhibits ATTRACTIVE Price Sales Ratio
but UNATTRACTIVE P/E Ratio.
Read our Complete Detailed Valuation Report on JCPenney HERE.

ValuEngine Forecast
Target
Price*

Expected
Return

1-Month

6.80

-0.29%

3-Month

6.62

-2.97%

6-Month

6.42

-5.84%

1-Year

6.58

-3.48%

2-Year

4.74

-30.52%

3-Year

2.80

-58.95%

Valuation & Rankings

Valuation

66.48% undervalued

Valuation Rank(?)

1-M Forecast Return

-0.29%

1-M Forecast Return Rank

12-M Return

-8.58%

Momentum Rank(?)

94
29
62

Sharpe Ratio

-0.64

Sharpe Ratio Rank(?)

21

5-Y Avg Annual Return

-31.59%

5-Y Avg Annual Rtn Rank

23

Volatility

49.63%

Volatility Rank(?)

Expected EPS Growth

73.64%

EPS Growth Rank(?)

Market Cap (billions)

2.08

Size Rank

35
83
77

Trailing P/E Ratio

n/a

Trailing P/E Rank(?)

15

Forward P/E Ratio

n/a

Forward P/E Ratio Rank

n/a

PEG Ratio

0.07

PEG Ratio Rank

Price/Sales

0.17

Price/Sales Rank(?)

Market/Book

1.34

Market/Book Rank(?)

Beta

1.20

Beta Rank

Alpha

0.04

Alpha Rank

86
93
60
32
71

What's Hot--Valuations Dive On Market Pullback

Apple Inc. (AAPL) is engaged in designing, manufacturing and marketing
mobile communication and media devices, personal computers, and portable digital
music players. The Company's products and services include iPhone, iPad, Mac, iPod,
Apple TV, a portfolio of consumer and professional software applications, the iOS and
Mac OS X operating systems, iCloud, and a range of accessory, service and support
offerings. It sells its products worldwide through its online stores, its retail stores, its
direct sales force, third-party wholesalers, and resellers. Apple Inc. is headquartered in
Cupertino, California.
Apple posted disappointing results this past Tuesday, and the market reacted in
a negative fashion. The company posted revenues of $75.87 billion, which was below
consensus estimates--$76.6 billion. Earnings per share increased to $3.28/share up
from the $3.06/share posted last year--and they beat estimates of $3.23/share here.
Net income also increased, to $18.36 billion--a boost of almost 2%.
However, while these numbers represent growth, they do not show the sort of
explosive climb analysts and investors have grown to expect from Apple. And once
you dig into the numbers, there is reason for concern. The all important iPhone
numbers were similarly disappointing, with the sales growth essentially flat--growth
was less than 1%. Mac computer and iPad sales provided no solace, and were down
year-over-year.

While the company reported higher sales to China than elsewhere, those
numbers were also down when compared to the past fiscal year. Apple noted that
sales were harmed in foreign markets--which are hugely important to the company-due to the stronger US dollar.
Luca Maestri, Apple CFO, noted that "record sales and strong margins drove
all-time records for net income and EPS in spite of a very difficult macroeconomic
environment." Tim Cook, the CEO, also noted the tough global environment and said
earnings were impacted by "extreme conditions unlike anything we've experienced
before just about anywhere we look."
The shares declined in aftermarket trading last night, and they are now down
even more. As expected, the relatively bad news from Apple hurt the market as those
results, along with bad reports from Boeing, served to further fuel doubts about the
health of the global economy.
Of course, this stock is a powerhouse. They retain a massive cash reserve on
their balance sheet. And a "bad" Apple is still a huge company with oversized
revenues. But, if he explosive growth phase is over, then investors will need to adjust
their expectations. Regardless, it will take a while for changes in guidance, analysts
estimates, and share price fluctuations to work their way through our systems.

ValuEngine Capital Is Now Autotrading Our

Strategies
We are pleased to announce that ValuEngine Capital has begun trading for
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The portfolio has 15 stocks and is rebalanced once each month.
Automatically Trade Our Portfolio Strategies ValuEngine Market Neutral
Strategy: The ValuEngine Market Neutral Strategy is the product of
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For more information, please contact us by email at
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buy/hold/sell recommendations, target price, and valuations on over 7,000
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